Marketing Ch. 4 Test

Service businesses usually have less control over pricing than businesses that sell products.

• True

• False

Which element of the marketing mix usually receives the most attention from producers and manufacturers?

• product

• price

• promotion

• distribution

Marketers rely on _______________ to plan the marketing mix.

• both creativity and research

• only creativity

• only research

• intuition

Businesses deal with customer needs in a variety of ways. Which of the following is the most effective?

• They ignore their customers’ needs because they don’t consider them to be important.

• They believe their customers don’t understand their own needs.

• They try to understand how customers evaluate products and services to make decisions about what to purchase.

• They try to influence customer needs with well-designed products and effective pricing and promotion.

With the marketing concept, planning begins by

• deciding on a promotional strategy.

• identifying potential customers and their needs.

• developing a product.

• developing a marketing mix.

All of the following are common reasons for business failure except

• the business understands and uses the marketing concept.

• the business believes it knows what customers want.

• the business does not study the market.

• the business does not use any available marketing tools.

In which of these economic environments do companies find the marketing concept to be of the most value?

• oligopoly

• pure competition

• monopolistic competition

• monopoly

The first stage in the consumer decision-making process is to

• evaluate choices.

• recognize a need.

• make a decision.

• identify alternatives.

Probably the most difficult marketing decision to understand and plan is

• product development.

• promotion.

• distribution.

• price.

Which of these statements is true regarding how pricing decisions are made?

• Most businesses set prices the same or slightly higher than their major competitors.

• Production, marketing, and operating costs make up a very small percentage of the final price of most products, so the net profit available often is quite large.

• Prices must be calculated carefully, so that businesses make a profit after expenses are paid.

• Manufacturers generally communicate price through tags or stickers, and customers pay the price that is marked.